Sebi Slaps OPG Securities with Rs 5.2 Crore Penalty for NSE Co-location Scandal

The Securities and Exchange Board of India (Sebi) has fined OPG Securities and its directors Rs 5.2 crore for unfairly accessing secondary market servers in the National Stock Exchange (NSE) co-location issue. Additional fines were levied for non-compliance with regulations. Despite appeals, Sebi proceeded with the penalties.

The Securities and Exchange Board of India (Sebi) has imposed a significant penalty on stockbroker OPG Securities and its directors, amounting to Rs 5.2 crore, for gaining unfair access to secondary market servers amid the NSE co-location controversy.

According to Sebi's order, released on Wednesday, the fines include a Rs 5 crore penalty on OPG Securities and its directors, Sanjay Gupta, Sangeeta Gupta, and Om Prakash Gupta, for engaging in unfair trade practices. An additional penalty of Rs 10 lakh each was levied on OPG Securities and Sanjay Gupta for non-compliance with the regulator's code of conduct and impeding investigation efforts.

Despite the company's plea to suspend fines pending appeals to the Supreme Court and the Securities Appellate Tribunal (SAT), Sebi advanced the penalty process. It determined that OPG Securities repeatedly accessed the Secondary POP Server, contravening fair practice standards. The regulator affirmed its decision after giving the accused multiple opportunities to present their case, citing a serious violation of regulatory norms.

(With inputs from agencies.)